Miami Man Pleads Guilty to Promoting HyperFund Scam Involving $1.8 Billion in Investor Funds

Rodney "Bitcoin Rodney" Burton, a resident of Miami, Florida, has pleaded guilty in federal court to participating in a cryptocurrency scam related to HyperFund, which involves approximately $1.8 billion.

According to federal prosecutors in Maryland, Burton admitted to "conspiracy to operate an unlicensed money transmitting business." Between June 2020 and January 2022, he promoted this Ponzi-structured project and profited approximately $7.85 million from it.

Law enforcement authorities noted that HyperFund attracted investors with promises of high returns of "0.5% to 1% daily." In reality, there were no legitimate crypto mining operations or sustainable sources of income. The funds essentially came from new investors, making it a typical Ponzi scheme. The platform began restricting withdrawals in 2021.

The U.S. Department of Justice stated that the project raised funds from investors globally, and during its operation, funds were used for promotion and transfer, constituting a large-scale cross-border wire fraud network.

Burton faces a maximum of five years in federal prison. A sentencing hearing is scheduled for July 23. Law enforcement agencies indicated that the case was jointly investigated by the IRS Criminal Investigation division and the Homeland Security Investigations. (U.S. Department of Justice)